CEVA, Inc. Reports Third Quarter 2005 Financial Results

October 26, 2005

SAN JOSE, Calif. - October 26, 2005 - CEVA, Inc. (NASDAQ: CEVA;
LSE: CVA), the leading licensor of digital signal processor (DSP) cores,
multimedia, GPS and storage platforms to the semiconductor industry, today
announced financial results for the third quarter ended September 30,
2005.

Total revenue for the third quarter of 2005 was $8.4 million, a
decrease of 14% compared to $9.7 million reported for the third quarter of
2004. Third quarter of 2005 licensing revenue was $5.7 million, a decrease
of 18% from the third quarter of 2004.

Third quarter of 2005 royalty revenue was $1.5 million, a decrease of
5% compared to $1.6 million for the third quarter of 2004. Revenue from
services was $1.2 million for the third quarters of 2005 and 2004.

Net loss for the third quarter of 2005 was $0.5 million, compared to
net income of $0.6 million for the third quarter of 2004. Net loss per
share for the third quarter of 2005 was $0.03 per share compared to net
income of $0.03 per share for the third quarter of 2004. Results for the
third quarter of 2005 included a reorganization charge of $1.7 million
recorded in the operating expenses associated with leased facility
requirements and a gain of $1.5 million reported in interest and other
income related to the disposal of an investment. The reorganization charge
is associated with the previously announced plans to reduce the Company's
operating expenses, primarily those related to general and administrative
functions.

Pro forma net loss and pro forma net loss per share for the third
quarter of 2005, excluding the effect of the reorganization charge and the
gain on investment described above would have been $0.4 million and $0.02,
respectively.

The Company believes that this pro forma presentation of results and
net loss per share is useful to investors in comparing the results for the
third quarter of 2005 to the same quarter of 2004, because it excludes
items that management does not consider meaningful for purposes of
analyzing the Company's operating results and making budget-planning
decisions. Specifically, the Company's management believes the exclusion
of the reorganization charge and the gain from disposal of an investment
is useful to investors because such charges and gains may not be
indicative of the Company's core operating results when comparing the
third quarters of 2004 and 2005.

"The third quarter was a good indicator of our product strategy and
focus." said Gideon Wertheizer, Chief Executive Officer of CEVA. "We
signed five new license agreements in the quarter, bringing our total to
17 for the first nine months of 2005. Two of the license agreements signed
in the quarter were for our flagship CEVA-X DSP core. Both of these
licensees are leading companies in the Asia Pacific region and both have
plans to use our CEVA-X DSP core and multimedia technologies for next
generation 3G phones. CEVA-X continues to be a strong growth driver for
the Company, with 10 licensees to date. Our customers are benefiting from
the scalability, performance and the low power which CEVA-X offers. It
also powers our new mobile multimedia solution, the Mobile-Media2000."

Wertheizer added, "Recently, we expanded our serial storage platform
offering with the addition of our Serial Attached SCSI (SAS) solution, the
industry's first open-foundry IP core for SAS. This technology is evolving
and becoming the storage interface of choice for emerging enterprise
applications. The compatibility of this technology with Serial ATA
provides customers the ability to develop enterprise storage systems to
meet high performance and low cost specifications. We believe that Serial
Attached SCSI shows strong potential for growth and we recognize CEVA-SAS
as a valuable addition to our IP portfolio."

On October 26, 2005, CEVA's management will conduct a conference call
at 10:30 a.m. Eastern Time / 3.30 p.m. London time, to discuss the
operating performance for the quarter.

The conference call will be available via the following dial in
numbers:

US Participants: Dial 1-800-322-0079
International Participants:
Dial +44-800-917-4860

The conference call will also be available live via the Internet by
accessing the CEVA web site at ceva-dsp.com.Please go to the web site
at least fifteen minutes prior to the call to register, download and
install any necessary audio software.

For those who cannot access the live broadcast, a replay will be
available by dialing 1-877-519-4471 (passcode: 6588892) for US domestic
callers and +44-800-917-2646 (passcode: 1394489) for international callers
during the period beginning two hours after the end of the call and ending
at 11:59 p.m. (Eastern Time) on November 9, 2005. The replay will also be
available at CEVA's web site ceva-dsp.com.

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Headquartered in San Jose, Calif., CEVA is the leading licensor of digital signal processor (DSP) cores, multimedia, GPS and storage platforms to the semiconductor industry. CEVA licenses a family of programmable DSP cores, associated SoC system platforms and a portfolio of application platforms including multimedia, audio, Voice over Packet (VoP), GPS location, Bluetooth, Serial Attached SCSI and Serial ATA (SATA). In 2005 CEVA's IP was shipped in over 115 million devices. CEVA was created through the merger of the DSP licensing division of DSP Group and Parthus Technologies. For more information, visit ceva-dsp.com.

A PDF copy of this press release is also available here

This press release contains forward-looking statements
that involve risks and uncertainties, as well as assumptions that if they
materialize or prove incorrect, could cause the results of CEVA to differ
materially from those expressed or implied by such forward-looking
statements and assumptions. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. The risks, uncertainties and assumptions include: the ability
of the CEVA-X line of products to continue to be a strong growth driver
for the Company; intense competition within our industry; the industries
in which we license our technology have experienced a challenging period
of growth; that the market for our technology may not develop as expected,
especially in the case of newly introduced or planned to be introduced
technologies; our ability to timely and successfully develop and introduce
new technologies; our reliance on revenue derived from a limited number of
licensees; and other risks relating to our business, including, but not
limited to, those that are described from time to time in the Company's
Securities and Exchange Commission filings, including but not limited to
its Annual Report on Form 10-K for the fiscal year ended December 31,
2004, and its quarterly reports filed after the Form 10-K. CEVA assumes no
obligation to update any forward-looking statements or information, which
speak as of their respective dates.